The Beginnings of a New DAE (Distributed Autonomous Economy)
Geoffrey Moore, in his book “Zone to Win: Organizing to Compete in the Age of Disruption,” says: “resource allocation, return on investment, organizational structure, operating cadence, success metrics, and … compensation all [must be] aligned” to: deliver revenue performance, enable productivity enhancements to foster and fuel ongoing performance, incubate future innovations, and bring innovations to scale.
In a world where everything connects to everything, the speed of disruption, the pace of change and the range of choices are constantly increasing. While on one hand our digital-first world demands smaller entities and rapid innovation to meet customer needs, our economy currently encompasses an imbalanced set of large entities and institutions, with legacy processes and technology in place that cannot possibly be expected to adjust at the rate needed.
More than the Internet, more than blockchain
This is why we are looking to commercialize the tremendous inventions of blockchain for the benefit of everyone. While this technology is a critical part of the transformation, the big picture is about far more than blockchain.
It’s about decentralized collaboration on the scale of economic activity larger than the largest corporations. It’s about capital formation, coordination, investment and value creation without the need for centralized control. The ability to freely combine shared assets that are self-monetized because the contract of use is bound to access to the asset. It’s about the emancipation of talent from work-for-hire to participate for value. It’s about a new paradigm of business that constantly evolves as adoption grows. It’s about transformational realignment of interest within a new economic model.
What is called for is not another corporate re-org, nor some new political party. What is emerging now is a series of DIstributed Autonomous Economies (DAEs) that make up an ecosystem of ecosystems, with millions of companies, DAOs, teams and individuals creating a new better economic framework.
Entering the Distributed Age
The Distributed Age is unprecedented because multiple technical and commercial disruptions are occurring simultaneously. New technologies (AIs, Blockchain, Internet of Things, Mobile Computing, 3D Printing, etc.) are combining to create new models of commercial activity (Alibaba/Amazon, collaborative/sharing economies, gig economies, smart contracts, supply chain finance, etc.). We believe this era’s changes are inevitable, and though they might be resisted, they can’t be stopped.
Current national economic structures and laws aren’t sufficient to handle these emerging activities. We need something new. The changes require a new global economic framework that can overlay our existing one, and gradually transform it while minimizing disruption. DAEs offer a better economic system built for the connection age, where everything connects to everything.
An economy wrapped as a commercial enterprise
We propose what we believe is inevitable: a global economy run on blockchain that sits on top of and extends national and regional economies. An economy that functions commercially to increase GNP without requiring a government sponsor. An economy that is a meta-market of distributed marketplaces — a network of networks.
Two years ago, the infrastructure for the next evolution did not exist. Now the Collaborative/Sharing Economy is beginning to mix with the Gig Economy and blockchain technology, enabling new opportunities. The opportunity is now here to deliver many disparate teams, resources and business functions through a simple, unified user experience, and release the economy’s benefits to everyone — just as Amazon or Alibaba wrap the details of a multi-source product purchase in a simple user experience.
Next up: How do Supply Chain practices and Blockchain technology support a new economy?